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US petrochemical companies seek exports to Asia

06.12.2013  | 

Hydraulic fracturing and other drilling technologies are keeping prices for natural gas -- a key raw material for Dow Chemical and other chemical producers -- below $4/MMBtu. That's cheap enough that the US chemical industry can start taking market share from Middle Eastern producers.

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By BEN LEFEBVRE

US oil and natural gas prices are low enough that the country could start becoming a major petrochemical exporter into Asia, a report said on Wednesday.
 
Hydraulic fracturing and other drilling technologies are keeping prices for natural gas -- a key raw material for Dow Chemical and other chemical producers -- below $4/MMBtu.

That's cheap enough that the US chemical industry can start taking market share from Saudi Arabia and other Middle East chemical producers in nearly any market.
 
"If we export petchems into Asia, the Saudis are going to worry," says Edgard Habib, chief economist at Chevron.

"We are entering a race between OPEC and technology."


Dow Jones Newswires



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08.12.2013

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Geronimo
06.26.2013

Bully for the Russians. Now they can sell all of that oil and natural gas to the Chinese and Europeans. China would make an exenclelt market. Unlike the West, the Chinese have no desire to bully anyone around about their government, human rights, etc. China borders Russia and the pipelines can be built far enough east as to avoid Muslims R' Us in Central Asia. As China grows and grows economically and militarily (and Russia declines), the Chinese can offer to be a guaranteer of Russia's security against Muslims R' Us in the south. The Chinese, in return, get a free hand in economic dealings with Central Asia, including tapping all of that Caspian Sea oil as well (and Iranian natural gas). Since China's economy will be so big by that time, there will be more than enough market for oil and natural gas (even with all of those Chinese nuclear plants) that there will be no need for Iran, the Caspian Sea countries, and Russia to fight over market share.

Jeff Mason
06.14.2013

I agree: OPEC/Saudis will worry. If we become a major exporter / [competitor] with OPEC, guess what? They will fight back by raising oil prices, to create a disincentive for our petrochemical exports. The ONLY way this can work is if WE, as a UNIFIED NATION, go ahead and convert to Natural Gas - virtually ALL existing cars can be converted to run on NG. If so, then WE will become the new "energy force to be reckoned with" - and Saudi and other nations will be purchasing OUR exports, instead of the other way around.

JAAlmiranes
06.14.2013

What takes them soo long? Liquify it and transport to Asia.

Jeff Mason
06.13.2013

I agree: OPEC/Saudis will worry. If we become a major exporter / [competitor] with OPEC, guess what? They will fight back by raising oil prices, to create a disincentive for our petrochemical exports. The ONLY way this can work is if WE, as a UNIFIED NATION, go ahead and convert to Natural Gas - virtually ALL existing cars can be converted to run on NG. If so, then WE will become the new "energy force to be reckoned with" - and Saudi and other nations will be purchasing OUR exports, instead of the other way around.

R.Sridhar
06.13.2013

natural gas from US is only on paper. This story is going for many years and stiil oil is flowing asia to the whole world. It is another hype by US.

R.Sridhar
06.13.2013

natural gas from US is only on paper. This story is going for many years and stiil oil is flowing asia to the whole world. It is another hype by US.

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